ICONIC (9113): ICONIC WORLDWIDE BERHAD to raise RM38.25m from private placement for working capital of glove venture

ICONIC (9113): ICONIC WORLDWIDE BERHAD to raise RM38.25m from private placement for working capital of glove venture

KUALA LUMPUR (Nov 11): Iconic Worldwide Bhd is planning to raise RM38.25 million from a private placement to fund the working capital of its glove and medical face mask venture.

This is the group's second private placement in the last 12 months. The group placed out 97.11 million new shares in November last year, raising RM43.7 million then.

In a bourse filing on Wednesday (Nov 10), the group said it planned to issue up to 95.63 million shares for the placement at an indicative price of 40 sen per share. Its share price was at 45.5 sen as at noon today, falling from the recent high of 51.5 sen in late August.

The group will allocate RM37.35 million raised from the private placement for working capital of its newly completed RM200 million personal protective equipment (PPE) manufacturing facility for gloves and medical face masks at the Batu Kawan Industrial Park in Penang.

Iconic Worldwide said RM25 million will be spent on purchasing raw materials and consumables such as nitrile butadiene, rubber latex, nitrile stabiliser and other chemicals for the production of rubber gloves.

The group has also earmarked RM3 million for the purchases of additional production machinery for disposable face masks and ancillary equipment which include packaging machines, while RM4.35 million will be used for staff costs and other operating and administrative expenses, and RM5 million for the set-up cost of a solar energy harvesting system and IT infrastructure including Enterprise Resource Planning (ERP) system.

Nitrile gloves' production is expected to commence this month with four production lines. Iconic Worldwide is expecting to grow them to six production lines by the end of 2021 and further to 12 production lines by the end of the first quarter of 2022.

http://www.theedgemarkets.com/article/iconic-worldwide-raise-rm3825m-private-placement-working-capital-glove-venture